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Knesset revokes measure that made more online purchases tax-exempt

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24.02.2026

A measure that would have made it cheaper for Israelis to order goods online from abroad was revoked in the Knesset by a vote of 59 to 25 early Tuesday morning.

The order from Finance Minister Bezalel Smotrich let Israelis buy up to $150 of personal goods from overseas — including from popular sites like Amazon and Temu — without incurring an additional 18% value-added tax. That amount was double the previous limit of $75.

Since the order went into effect on December 24, it has been hailed by the general public but drawn sharp condemnation from local business owners who argued it would hobble their sales. They succeeded in garnering support from other members of the coalition, in particular from within Prime Minister Benjamin Netanyahu’s ruling Likud party.

“This activity is a death sentence for the business sector,” said Likud MK Eli Dalal, who opposed the measure, according to a Knesset readout. He said Israel’s high cost of living derives from housing, rent and food prices, which he says “unfortunately weren’t addressed over the last three years.”

After the vote, Smotrich lashed out at the members of Prime Minister Benjamin Netanyahu’s right-wing coalition who tanked the measure, branding them as part of the “left” and accusing them of linking up with the opposition and working against the government. He vowed to issue another order in place of the one that was revoked.

“What happened........

© The Times of Israel